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EX-99.2 - EX-99.2 - Celanese Corp | d81609exv99w2.htm |
8-K - FORM 8-K - Celanese Corp | d81609e8vk.htm |
Exhibit 99.1
Celanese Corporation | ||
Investor Relations | ||
1601 West LBJ Freeway | ||
Corporate News Release | Dallas, Texas 75234 |
Celanese Corporation Reports First Quarter 2011 Results;
Raises Outlook for Remainder of Year
Raises Outlook for Remainder of Year
First quarter highlights:
§ | Net sales were $1,589 million, up 14% from prior year period | ||
§ | Operating profit was $188 million versus ($14) million in prior year period | ||
§ | Net earnings were $142 million versus $14 million in prior year period | ||
§ | Operating EBITDA was $304 million, up 26% from prior year period | ||
§ | Diluted EPS from continuing operations was $0.87 versus $0.06 in prior year period | ||
§ | Adjusted EPS was $0.96, up 50% from prior year period |
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ millions, except per share data) - Unaudited | 2011 | 2010 | ||||||
As Adjusted3 | ||||||||
Net sales |
1,589 | 1,388 | ||||||
Operating profit (loss) |
188 | (14 | ) | |||||
Net earnings (loss) attributable to Celanese Corporation |
142 | 14 | ||||||
Operating EBITDA 1 |
304 | 242 | ||||||
Diluted EPS - continuing operations |
$0.87 | $0.06 | ||||||
Diluted EPS - total |
$0.90 | $0.07 | ||||||
Adjusted EPS 2 |
$0.96 | $0.64 | ||||||
1
Non-U.S. GAAP measure. See reconciliation in Table 1.
2
Non-U.S. GAAP measure. See reconciliation in Table 6.
3
The companys Ibn Sina investment is now included in the Advanced Engineered Materials segment using the equity
method of accounting. These results were previously reported in the Acetyl Intermediates segment using the cost method of
accounting. Amounts have been retrospectively adjusted to reflect
these changes.
Dallas, April 26, 2011: Celanese Corporation (NYSE: CE), a global technology and specialty
materials company, today reported first quarter 2011 net sales of $1,589 million, a 14 percent
increase from the prior year period, driven by higher pricing across all operating segments as well
as improved volumes. Higher pricing was primarily attributed to the successful recovery of
increased raw material input costs while volume improvement was driven by improved global demand.
Pricing and volume improvements were also driven by innovation efforts within the companys
Advanced Engineered Materials and Industrial Specialties segments. Operating profit increased to
$188 million from a loss of $14 million in the same period last year. Other charges and other
adjustments in the current period totaled $4 million, including a $20 million gain related to the
resolution of commercial disputes. First quarter 2010 results included $135 million of other
charges and other adjustments, primarily associated with the previously announced closure of the
companys acetate
manufacturing facility in Spondon, Derby, United Kingdom. Net earnings were $142 million compared
with $14 million in the same period last year. Diluted earnings per share from continuing
operations were $0.87 compared with $0.06 in the prior year period.
Adjusted earnings per share in the first quarter of 2011 rose 50 percent to $0.96 from $0.64 in the
prior year period. The tax rate and diluted share count for adjusted earnings per share in the
current period were 17
Page 2 of 15
percent and 158.7 million, respectively. Operating EBITDA was $304 million, up 26 percent from the
first quarter of 2010. Adjusted earnings per share and operating EBITDA excluded the other
charges and other adjustments in both periods.
Celanese once again delivered on the sustainable earnings growth objectives across the portfolio
of global businesses. Strong demand, combined with excellent execution of our strategies, more
than offset rising material costs, resulting in solid first quarter performance, said David
Weidman, chairman and chief executive officer. Our leading technology positions and
customer-focused innovation efforts are driving growth and profitability, while our relentless
pursuit of productivity increases our ongoing operating leverage.
Recent Highlights
| Announced the expansion of its ethylene vinyl acetate (EVA) capacity at its Edmonton manufacturing facility due to strong growth in strategic, high-value segments. Global EVA production increases are fueled by growth in the photovoltaic cell industry in China, strong demand for EVA in other parts of Asia, and demand for EVA in innovative applications such as controlled-release excipients and medical packaging. The company is expected to increase capacity by up to 15 percent for premium EVA grades in the second half of 2011. | ||
| Announced that its board of directors has approved a 20 percent increase in the companys quarterly common stock cash dividend. The dividend rate increased from $0.05 to $0.06 per share of common stock on a quarterly basis and from $0.20 to $0.24 per share on an annual basis. The board of directors also approved an increase in the companys existing share repurchase authorization to a total of $200 million of its common stock. As of March 31, 2011, the company had $71 million remaining under its previously announced plan that authorized up to $500 million. |
First Quarter Segment Overview
Advanced Engineered Materials
Advanced Engineered Materials experienced continued strong global demand across its product lines.
Net sales for the first quarter of 2011 were $328 million compared with $282 million in the prior
year period, driven by higher value-in-use pricing and increased
volumes across its product lines.
While all engineered
polymers experienced strong demand, volumes for polyacetal products (POM) were temporarily
constrained as the company continued to build inventory for its planned European capacity
expansion. Results in the quarter also benefited from the companys actions to enhance its product
portfolio through recent acquisitions. Reported operating profit decreased from $48 million in the
prior year period to $38 million in the current period. The favorable impact of higher pricing
and volumes more than offset increased raw material costs, as well as investments for future
growth. First quarter 2011 results included other charges and other adjustments of $12 million of
expense primarily associated with the European production capacity expansion. Operating EBITDA,
which excluded other charges and other adjustments in both periods, was
Page 3 of 15
$104 million in the first quarter of 2011, compared with $107 in the prior year period. Total
equity earnings
from the companys affiliates were $10 million lower than the same period last year as volume
growth in the companys Asian affiliates was offset by higher raw material costs and the timing of
certain expenses. The Japanese operations of the companys Polyplastics venture were not materially
impacted in the quarter by the recent natural disasters.
Consumer Specialties
Consumer Specialties delivered strong performance on higher volumes, particularly for cellulose
acetate products. Net sales for the first quarter of 2011 increased to $266 million from $238
million in the prior year period due to higher volumes as well as increased pricing. The volume
increase was due to modestly improved global demand in the current period as well as additional
availability of supply compared with the prior year period. In the first quarter of 2010, net
sales were temporarily impacted by an electrical disruption and subsequent production outage at the
companys acetate manufacturing facility in Narrows, Virginia. Operating profit rose to $54
million from a loss of $30 million in the same period last year as the increased volumes and
pricing more than offset increased raw material and energy costs. First quarter 2010 results
included $80 million of other charges and other adjustments, primarily associated with the
companys announced closure of its acetate manufacturing facility in Spondon, Derby, United
Kingdom. Operating EBITDA, which excluded other charges and other adjustments, was $68 million
compared with $61 million in the prior year period.
Industrial Specialties
Industrial Specialties delivered strong results as it continued to realize growth in both
traditional and nontraditional sectors through increased global demand and its innovation efforts.
Net sales for the first quarter of 2011 increased to $290 million from $242 million in the same
period last year, driven by increased pricing and higher volumes. Higher pricing was attributed to
recent pricing actions, current strong demand and improved product mix on increased sales to higher
value-added applications, including photovoltaic applications. The increased volumes were driven
by the benefits of product innovation and continued growth in Celaneses vinyl emulsion
applications, as well as higher demand for EVA performance polymers. Operating profit in the first
quarter of 2011 was $25 million compared with $12 million in the same period last year, as the
higher volumes, enhanced product mix and increased pricing more than offset higher raw material
costs. Operating EBITDA was $35 million compared with $22 million in the prior year period.
Acetyl Intermediates
Acetyl Intermediates delivered improved results on continued strong global demand for acetic acid
and downstream derivative products. Net sales for the first quarter of 2011 rose to $813 million
from $724 million in the prior year period. The increase in net sales was primarily due to
favorable pricing across all regions and all acetyl product lines. Higher industry utilization due
to planned and unplanned production outages of multiple acetyl producers, as well as rising raw
material costs, drove the increased pricing. Operating profit in the current period increased to
$112 million from $0 in the prior year period as the
Page 4 of 15
favorable pricing and the benefit from its manufacturing realignment activities, including the
closure of the
companys operations in Pardies, France, more than offset higher raw material and energy costs.
The first quarter 2011 results included a $19 million gain related to vendor settlements and first
quarter 2010 results included $52 million of other charges and other adjustments primarily related
to a contract termination of a bankrupt supplier and write-off of other productive assets.
Operating EBITDA, which excluded other charges and other adjustments, increased to $122 million in
the first quarter of 2011 from $78 million in the same period last year.
Taxes
The tax rate for adjusted earnings per share was 17 percent in the first quarter of 2011 compared
with 20 percent in the first quarter of 2010. The effective tax rate for continuing operations for
the first quarter of 2011 was 23 percent versus (286) percent in the first quarter of 2010. The
lower effective tax rate in the first quarter of 2010 was primarily due to the effect of tax
legislation in Mexico, partially offset by foreign losses not resulting in tax benefits and the
effect of healthcare reform in the U.S. Net cash taxes refunded were $6 million in the first
quarter of 2011 compared with net cash taxes paid of $11 million in the first quarter of 2010.
Equity and Cost Investments
Earnings from equity investments and dividends from cost investments, which are reflected in the
companys earnings and operating EBITDA, were $43 million in the first quarter of 2011, $6 million
lower than the prior year period. Equity and cost investment dividends, which are included in cash
flows, were $73 million, $16 million higher than the same period last year.
In the first quarter of 2011, earnings in equity investments for Ticonas strategic affiliates in
Asia were $13 million, $8 million lower than the same period last year, while proportional
affiliate EBITDA in excess of equity net earnings was $17 million, $2 million lower than the prior
year period.
Ticonas Middle Eastern affiliates, which include the companys Ibn Sina affiliate, reported equity
in net earnings of $21 million in the first quarter of 2011, a $2 million decrease from the same
period last year. The companys proportional affiliate EBITDA in excess of equity net earnings for
the Middle Eastern affiliates was $8 million, up $1 million from the prior year period.
The companys total proportional affiliate EBITDA for the first quarter of 2011 was $78 million, a
$7 million decrease from the prior year period and $35 million more than reported in the companys
operating EBITDA. As of March 31, 2011, the companys total proportional net debt of affiliates
was $122 million.
Cash Flow
Cash and cash equivalents at the end of the first quarter of 2011 were $722 million, a $417 million
decrease from the same period last year, reflecting, among other items, $200 million in net debt
repayment on its
Page 5 of 15
senior credit facility during the third quarter of 2010 and continued investment in organic growth
opportunities throughout the company. The company generated $132 million of cash from operating
activities compared with $55 million in the same period last year on strong performance and
favorable exchange rate effects. Net cash used in investing activities was $151 million compared
with $132 million in the prior year period. The 2011 results included $54 million of capital
expenditures related to the relocation of Ticonas business in Kelsterbach, Germany. Net debt at
the end of the first quarter of 2011 was $2,500 million, a $22 million increase from the end of
2010.
Outlook
Based on the strong first quarter results, and an expectation for sustained global economic growth,
the company increased its outlook for full year 2011 results. The company now expects 2011
operating EBITDA to be at least $200 million higher than 2010s results of $1,122 million and
adjusted earnings per share to be at least $0.85 higher than 2010s results of $3.37, based on a
tax rate and diluted share count of 17 percent and 158.7 million shares, respectively.
Advantaged technologies, leading global portfolio positions and innovative customer-focused
solutions combined to deliver significantly improved earnings in the first quarter and are expected
to drive sustained earnings growth for Celanese throughout 2011, said Weidman. Additionally, our
integrated business model continues to demonstrate the earnings growth resiliency it has
successfully shown in the past, even in an environment of escalating raw material and energy
costs.
Contacts: |
||||
Investor Relations
|
Media - U.S. | Media - Europe | ||
Mark Oberle
|
Jacqueline Terry | Jens Kurth | ||
Phone: +1 972 443 4464
|
Phone: +1 972 443 4417 | Phone: +49(0)69 45009 1574 | ||
Telefax: +1 972 443 8519
|
Telefax: +1 972 443 8519 | Telefax: +49(0) 45009 58800 | ||
Mark.Oberle@celanese.com
|
Jacqueline.Terry@celanese.com | J.Kurth@celanese.com |
Celanese Corporation is a global technology leader in the production of specialty materials and
chemical products which are used in most major industries and consumer applications. Our products,
essential to everyday living, are manufactured in North America, Europe and Asia. Known for
operational excellence, sustainability and premier safety performance, Celanese delivers value to
customers around the globe with best-in-class technologies. Based in Dallas, Texas, the company
employs approximately 7,250 employees worldwide and had 2010 net sales of $5.9 billion, with
approximately 72% generated outside of North America. For more information about Celanese
Corporation and its global product offerings, visit www.celanese.com.
Forward-Looking Statements
This release may contain forward-looking statements, which include information concerning the
companys plans, objectives, goals, strategies, future revenues or performance, capital
expenditures, financing needs and other information that is not historical information. When used
in this release, the words outlook, forecast, estimates, expects, anticipates,
projects, plans, intends, believes, may, can, could, might, will and variations
of such words or similar expressions are intended to identify forward-looking statements. All
forward-looking statements are based upon current expectations and beliefs and various assumptions.
There can be no assurance that the company will realize these expectations or that these beliefs
will prove correct.
There are a number of risks and uncertainties that could cause actual results to differ materially
from the results expressed or implied in the forward-looking statements contained in this release.
These risks and uncertainties include, among other things: changes in general economic, business,
political and regulatory conditions in the countries or regions in which we operate; the length and
depth of business cycles, particularly in the automotive, electrical, electronics and construction
industries; changes in the price and availability of raw materials; the ability to pass increases
in raw material prices on to customers or otherwise improve margins
through price increases; the ability to maintain plant utilization rates and to implement planned
capacity additions and expansions; the ability to improve productivity by implementing
technological improvements to existing plants; increased price competition and the
Page 6 of 15
introduction of competing products by other companies; market acceptance of our technology; the
ability to obtain governmental approvals and to construct facilities on terms and schedule
acceptable to the company; changes in the degree of intellectual property and other legal
protection afforded to our products; compliance and other costs and potential disruption of
production due to accidents or other unforeseen events or delays in construction or operation of
facilities; potential liability for remedial actions and increased costs under existing or future
environmental regulations, including those relating to climate change; potential liability
resulting from pending or future litigation, or from changes in the laws, regulations or policies
of governments or other governmental activities in the countries in which we operate; changes in
currency exchange rates and interest rates; and various other factors discussed from time to time
in the companys filings with the Securities and Exchange Commission. Any forward-looking
statement speaks only as of the date on which it is made, and the company undertakes no obligation
to update any forward-looking statements to reflect events or circumstances after the date on which
it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Reconciliation of Non-U.S. GAAP Measures to U.S. GAAP
This release reflects the following performance measures: operating EBITDA, business operating
EBITDA, affiliate EBITDA and proportional affiliate EBITDA, adjusted earnings per share, and net
debt as non-U.S. GAAP measures. These measurements are not recognized in accordance with U.S. GAAP
and should not be viewed as an alternative to U.S. GAAP measures of performance. The most directly
comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial
statements for operating EBITDA and business operating EBITDA is net income; for proportional
affiliate EBITDA is equity in net earnings of affiliates; for affiliate EBITDA is operating profit;
for adjusted earnings per share is earnings per common share-diluted; and for net debt is total
debt.
Use of Non-U.S. GAAP Financial Information
§ | Operating EBITDA is defined by the company as net earnings less interest income plus loss (earnings) from discontinued operations, interest expense, taxes, and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Table 7. We present operating EBITDA because we consider it an important supplemental measure of our operations and financial performance. We believe that operating EBITDA is more reflective of our operations as it provides transparency to investors and enhances period-to-period comparability of our operations and financial performance. Operating EBITDA is one of the measures management uses for its planning and budgeting process to monitor and evaluate financial and operating results and for the companys incentive compensation plan. Operating EBITDA should not be considered as an alternative to net income determined in accordance with U.S. GAAP. We may provide guidance on operating EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of Other Charges and Adjustments is not practical. | ||
§ | Business operating EBITDA is defined by the company as net earnings less interest income plus loss (earnings) from discontinued operations, interest expense, taxes and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Table 7, less equity in net earnings of affiliates, dividend income from cost investments and other (income) expense. This supplemental performance measure reflects the operating results of the companys operations without regard to the financial impact of its equity and cost investments. | ||
§ | Affiliate EBITDA is defined by the company as operating profit plus the depreciation and amortization of its equity affiliates. Proportional affiliate EBITDA is defined by the company as the proportional operating profit plus the proportional depreciation and amortization of its equity investments. The company has determined that it does not have sufficient ownership for operating control of these investments to consider their results on a consolidated basis. The company believes that investors should consider proportional affiliate EBITDA as an additional measure of operating results. | ||
§ | Adjusted earnings per share is a measure used by management to measure performance. It is defined by the company as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for Other Charges and Adjustments as described in Table 7, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We may provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a U.S. GAAP financial measure without unreasonable effort because a forecast of Other Items is not practical. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when U.S. GAAP information is viewed in conjunction with non-U.S. GAAP information, investors are provided with a more meaningful understanding of our ongoing operating performance. Note: The tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year, excluding changes in uncertain tax positions, discrete items and other material items adjusted out of our U.S. GAAP earnings for adjusted earnings per share purposes, and changes in managements assessments regarding the ability to realize deferred tax assets. We analyze this rate quarterly and adjust if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ significantly from the tax rate used for U.S. GAAP reporting in any given reporting period. It is not practical to reconcile our prospective adjusted tax rate to the actual U.S. GAAP tax rate in any future period. | ||
§ | Net debt is defined by the company as total debt less cash and cash equivalents. We believe that the presentation of this non-U.S. GAAP measure provides useful information to management and investors regarding changes to the companys capital structure. Our management and credit analysts use net debt to evaluate the companys capital structure and assess credit quality. Proportional net debt is defined as our proportionate share of our affiliates net debt. |
Results Unaudited
The results presented in this release, together with the adjustments made to present the results on
a comparable basis, have not been audited and are based on internal financial data furnished to
management. Quarterly results should not be taken as an indication of the results of operations to
be reported for any subsequent period or for the full fiscal year.
Page 7 of 15
Consolidated Statements of Operations - Unaudited
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ millions, except per share data) | 2011 | 2010 | ||||||
As Adjusted1 | ||||||||
Net sales |
1,589 | 1,388 | ||||||
Cost of sales |
(1,238 | ) | (1,170 | ) | ||||
Gross profit |
351 | 218 | ||||||
Selling, general and administrative expenses |
(128 | ) | (124 | ) | ||||
Amortization of Intangible assets |
(16 | ) | (15 | ) | ||||
Research and development expenses |
(23 | ) | (18 | ) | ||||
Other (charges) gains, net |
3 | (77 | ) | |||||
Foreign exchange gain (loss), net |
1 | 2 | ||||||
Operating profit (loss) |
188 | (14 | ) | |||||
Equity in net earnings (loss) of affiliates |
43 | 49 | ||||||
Interest expense |
(55 | ) | (49 | ) | ||||
Interest income |
1 | 1 | ||||||
Other income (expense), net |
3 | 6 | ||||||
Earnings (loss) from continuing operations before tax |
180 | (7 | ) | |||||
Income tax (provision) benefit |
(42 | ) | 20 | |||||
Earnings (loss) from continuing operations |
138 | 13 | ||||||
Earnings (loss) from operation of discontinued operations |
6 | - | ||||||
Gain on disposal of discontinued operations |
- | 2 | ||||||
Income tax (provision) benefit, discontinued operations |
(2 | ) | (1 | ) | ||||
Earnings (loss) from discontinued operations |
4 | 1 | ||||||
Net earnings (loss) |
142 | 14 | ||||||
Less: Net earnings (loss) attributable to noncontrolling interests |
- | - | ||||||
Net earnings (loss) attributable to Celanese Corporation |
142 | 14 | ||||||
Cumulative preferred stock dividend |
- | (3 | ) | |||||
Net earnings (loss) available to common shareholders |
142 | 11 | ||||||
Amounts attributable to Celanese Corporation |
||||||||
Earnings (loss) per common share - basic |
||||||||
Continuing operations |
$0.88 | $0.06 | ||||||
Discontinued operations |
0.03 | 0.01 | ||||||
Net earnings (loss) - basic |
$0.91 | $0.07 | ||||||
Earnings (loss) per common share - diluted |
||||||||
Continuing operations |
$0.87 | $0.06 | ||||||
Discontinued operations |
0.03 | 0.01 | ||||||
Net earnings (loss) - diluted |
$0.90 | $0.07 | ||||||
Weighted average shares (millions) |
||||||||
Basic |
156.0 | 150.3 | ||||||
Diluted |
158.7 | 152.6 | ||||||
1 The companys Ibn Sina investment is now included in the Advanced Engineered
Materials segment using the equity method of accounting. These results were previously reported
in the Acetyl Intermediates segment using the cost method of accounting. Amounts have been
retrospectively adjusted to reflect these changes.
Page 8 of 15
Consolidated Balance Sheets - Unaudited
As of | As of | |||||||
March 31, | December 31, | |||||||
(in $ millions) | 2011 | 2010 | ||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash & cash equivalents |
722 | 740 | ||||||
Trade receivables - third party and affiliates, net |
950 | 827 | ||||||
Non-trade receivables |
269 | 253 | ||||||
Inventories |
688 | 610 | ||||||
Deferred income taxes |
94 | 92 | ||||||
Marketable securities, at fair value |
74 | 78 | ||||||
Assets held for sale |
9 | 9 | ||||||
Other assets |
45 | 59 | ||||||
Total current assets |
2,851 | 2,668 | ||||||
Investments in affiliates |
822 | 838 | ||||||
Property, plant and equipment, net |
3,153 | 3,017 | ||||||
Deferred income taxes |
438 | 443 | ||||||
Other assets |
302 | 289 | ||||||
Goodwill |
804 | 774 | ||||||
Intangible assets, net |
252 | 252 | ||||||
Total assets |
8,622 | 8,281 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities |
||||||||
Short-term borrowings and current
installments of long-term debt - third party and affiliates |
219 | 228 | ||||||
Trade payables - third party and affiliates |
740 | 673 | ||||||
Other liabilities |
554 | 596 | ||||||
Deferred income taxes |
29 | 28 | ||||||
Income taxes payable |
68 | 17 | ||||||
Total current liabilities |
1,610 | 1,542 | ||||||
Long-term debt |
3,003 | 2,990 | ||||||
Deferred income taxes |
122 | 116 | ||||||
Uncertain tax positions |
285 | 273 | ||||||
Benefit obligations |
1,352 | 1,359 | ||||||
Other liabilities |
1,114 | 1,075 | ||||||
Commitments and contingencies |
||||||||
Shareholders equity |
||||||||
Preferred stock |
- | - | ||||||
Common stock |
- | - | ||||||
Treasury stock, at cost |
(832 | ) | (829 | ) | ||||
Additional paid-in capital |
583 | 574 | ||||||
Retained earnings |
1,985 | 1,851 | ||||||
Accumulated other comprehensive income (loss), net |
(600 | ) | (670 | ) | ||||
Total Celanese Corporation shareholders equity |
1,136 | 926 | ||||||
Noncontrolling interests |
- | - | ||||||
Total shareholders equity |
1,136 | 926 | ||||||
Total liabilities and shareholders equity |
8,622 | 8,281 | ||||||
Page 9 of 15
Table 1
Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ millions) | 2011 | 2010 | ||||||
As Adjusted4 | ||||||||
Net Sales |
||||||||
Advanced Engineered Materials |
328 | 282 | ||||||
Consumer Specialties |
266 | 238 | ||||||
Industrial Specialties |
290 | 242 | ||||||
Acetyl Intermediates |
813 | 724 | ||||||
Other Activities 1 |
1 | - | ||||||
Intersegment eliminations |
(109 | ) | (98 | ) | ||||
Total |
1,589 | 1,388 | ||||||
Operating Profit (Loss) |
||||||||
Advanced Engineered Materials |
38 | 48 | ||||||
Consumer Specialties |
54 | (30 | ) | |||||
Industrial Specialties |
25 | 12 | ||||||
Acetyl Intermediates |
112 | - | ||||||
Other Activities 1 |
(41 | ) | (44 | ) | ||||
Total |
188 | (14 | ) | |||||
Other Charges and Other Adjustments 2 |
||||||||
Advanced Engineered Materials |
12 | (2 | ) | |||||
Consumer Specialties |
5 | 80 | ||||||
Industrial Specialties |
- | - | ||||||
Acetyl Intermediates |
(17 | ) | 52 | |||||
Other Activities 1 |
4 | 5 | ||||||
Total |
4 | 135 | ||||||
Depreciation and Amortization Expense 3 |
||||||||
Advanced Engineered Materials |
19 | 17 | ||||||
Consumer Specialties |
8 | 11 | ||||||
Industrial Specialties |
10 | 10 | ||||||
Acetyl Intermediates |
25 | 25 | ||||||
Other Activities 1 |
4 | 3 | ||||||
Total |
66 | 66 | ||||||
Business Operating EBITDA |
||||||||
Advanced Engineered Materials |
69 | 63 | ||||||
Consumer Specialties |
67 | 61 | ||||||
Industrial Specialties |
35 | 22 | ||||||
Acetyl Intermediates |
120 | 77 | ||||||
Other Activities 1 |
(33 | ) | (36 | ) | ||||
Total |
258 | 187 | ||||||
Equity Earnings, Cost - Dividend Income and Other
Income (Expense) |
||||||||
Advanced Engineered Materials |
35 | 44 | ||||||
Consumer Specialties |
1 | - | ||||||
Industrial Specialties |
- | - | ||||||
Acetyl Intermediates |
2 | 1 | ||||||
Other Activities 1 |
8 | 10 | ||||||
Total |
46 | 55 | ||||||
Operating EBITDA |
||||||||
Advanced Engineered Materials |
104 | 107 | ||||||
Consumer Specialties |
68 | 61 | ||||||
Industrial Specialties |
35 | 22 | ||||||
Acetyl Intermediates |
122 | 78 | ||||||
Other Activities 1 |
(25 | ) | (26 | ) | ||||
Total |
304 | 242 | ||||||
1
Other Activities primarily includes corporate selling, general and
administrative expenses and the results from captive insurance
companies.
2
See Table 7 for details.
3 Excludes accelerated depreciation and amortization associated with plant
closures included in Other Charges and Other Adjustments above. See Table 1A for details.
4
The companys Ibn Sina investment is now included in the Advanced Engineered
Materials segment using the equity method of accounting. These results were previously reported in
the Acetyl Intermediates segment using the cost method of accounting. Amounts have been
retrospectively adjusted to reflect these changes.
Page 10 of 15
Table 1A
Reconciliation of Consolidated Net Earnings (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
Reconciliation of Consolidated Net Earnings (Loss) to Operating EBITDA -
a Non-U.S. GAAP Measure - Unaudited
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ millions) | 2011 | 2010 | ||||||
As Adjusted2 | ||||||||
Net earnings (loss) attributable to Celanese Corporation |
142 | 14 | ||||||
(Earnings) loss from discontinued operations |
(4 | ) | (1 | ) | ||||
Interest income |
(1 | ) | (1 | ) | ||||
Interest expense |
55 | 49 | ||||||
Income tax provision (benefit) |
42 | (20 | ) | |||||
Depreciation and amortization expense3 |
66 | 66 | ||||||
Other charges (gains), net 1 |
(3 | ) | 77 | |||||
Other adjustments 1 |
7 | 58 | ||||||
Operating EBITDA |
304 | 242 | ||||||
Detail by Segment |
||||||||
Advanced Engineered Materials |
104 | 107 | ||||||
Consumer Specialties |
68 | 61 | ||||||
Industrial Specialties |
35 | 22 | ||||||
Acetyl Intermediates |
122 | 78 | ||||||
Other Activities 4 |
(25 | ) | (26 | ) | ||||
Operating EBITDA |
304 | 242 | ||||||
1
See Table 7 for details.
2
The companys Ibn Sina investment is now included in the Advanced
Engineered Materials segment using the equity method of accounting. These results were previously
reported in the Acetyl Intermediates segment using the cost method of accounting. Amounts have
been retrospectively adjusted to reflect these changes.
3
Excludes accelerated depreciation and amortization associated with plant
closures as detailed in the table below and included in Other
adjustments above.
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ millions) | 2011 | 2010 | ||||||
Advanced Engineered Materials |
2 | 3 | ||||||
Consumer Specialties |
4 | - | ||||||
Industrial Specialties |
- | - | ||||||
Acetyl Intermediates |
- | 20 | ||||||
Other Activities 4 |
- | - | ||||||
Accelerated depreciation and amortization |
6 | 23 | ||||||
Depreciation and amortization expense3 |
66 | 66 | ||||||
Total depreciation and amortization |
72 | 89 | ||||||
4
Other Activities primarily includes corporate selling, general and
administrative expenses and the results from captive insurance companies.
Page 11 of 15
Table 2
Factors Affecting Business Segment Net Sales - Unaudited
Three Months Ended March 31, 2011 Compared to Three Months Ended March 31, 2010
Volume | Price | Currency | Other | Total | ||||||||||||||||
Advanced Engineered Materials |
6 | % | 8 | % | -1 | % | 3% | 1 | 16 | % | ||||||||||
Consumer Specialties |
10 | % | 4 | % | 0 | % | -2% | 2 | 12 | % | ||||||||||
Industrial Specialties |
8 | % | 13 | % | -1 | % | 0% | 20 | % | |||||||||||
Acetyl Intermediates |
0 | % | 12 | % | 0 | % | 0% | 12 | % | |||||||||||
Total Company |
4 | % | 11 | % | -1 | % | 0% | 3 | 14 | % | ||||||||||
1 2011 includes the effects of the two product lines acquired from DuPont Performance Polymers (acquired in May 2010).
2 Includes the impact of fluctuations in intersegment sales.
3 Includes the effects of the captive insurance companies and the impact of fluctuations in intersegment eliminations.
Table 3
Cash Flow Information - Unaudited
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ millions) | 2011 | 2010 | ||||||
Net cash provided by operating activities |
132 | 55 | ||||||
Net cash provided by (used in) investing activities 1 |
(151 | ) | (132 | ) | ||||
Net cash used in financing activities |
(11 | ) | (15 | ) | ||||
Exchange rate effects on cash |
12 | (23 | ) | |||||
Cash and cash equivalents at beginning of period |
740 | 1,254 | ||||||
Cash and cash equivalents at end of period |
722 | 1,139 | ||||||
1 2011 and 2010 include $54 and $85 million, respectively, of capital expenditures related to the Ticona Kelsterbach plant relocation.
Table 4
Cash Dividends Received - Unaudited
Three Months Ended | ||||||||
March 31, | ||||||||
(in $ millions) | 2011 | 2010 | ||||||
As Adjusted1 | ||||||||
Dividends from equity investments |
73 | 57 | ||||||
Dividends from cost investments |
- | - | ||||||
Total |
73 | 57 | ||||||
1 The companys Ibn Sina investment is now included in the Advanced Engineered Materials segment using the equity method of accounting. These results were previously reported in the Acetyl Intermediates segment using the
cost method of accounting. Amounts have been retrospectively adjusted to reflect these changes.
Page12 of 15
Table 5
Net
Debt - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
As of | As of | |||||||
March 31, | December 31, | |||||||
(in $ millions) | 2011 | 2010 | ||||||
Short-term borrowings and current
installments of long-term debt - third party and affiliates |
219 | 228 | ||||||
Long-term debt |
3,003 | 2,990 | ||||||
Total debt |
3,222 | 3,218 | ||||||
Less: Cash and cash equivalents |
722 | 740 | ||||||
Net Debt |
2,500 | 2,478 | ||||||
Table 6
Adjusted Earnings (Loss) Per Share - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
(in $ millions, except per share data) | 2011 | 2010 | ||||||||||||||
As Adjusted4 | ||||||||||||||||
per | per | |||||||||||||||
share | share | |||||||||||||||
Earnings (loss) from continuing operations |
138 | 0.87 | 13 | 0.06 | ||||||||||||
Deduct Income tax (provision) benefit |
(42 | ) | 20 | |||||||||||||
Earnings (loss) from continuing operations
before tax |
180 | (7 | ) | |||||||||||||
Other charges and other adjustments 1 |
4 | 135 | ||||||||||||||
Adjusted earnings (loss) from continuing
operations before tax |
184 | 128 | ||||||||||||||
Income tax (provision) benefit on adjusted earnings 2 |
(31 | ) | (26 | ) | ||||||||||||
Less: Noncontrolling interests |
- | - | ||||||||||||||
Adjusted earnings (loss) from continuing
operations |
153 | 0.96 | 102 | 0.64 | ||||||||||||
Diluted shares (in millions)3 | ||||||||
Weighted average shares outstanding |
156.0 | 150.3 | ||||||
Assumed conversion of preferred stock |
- | 6.3 | ||||||
Dilutive restricted stock units |
0.7 | 0.4 | ||||||
Dilutive stock options |
2.0 | 1.9 | ||||||
Total diluted shares |
158.7 | 158.9 | ||||||
1
See Table 7 for details.
2
The adjusted effective tax rate is 17% and 20% for the three months ended March 31, 2011 and 2010, respectively.
3
Potentially dilutive shares are included in the adjusted earnings per share calculation when adjusted earnings are positive.
4
The companys Ibn Sina investment is now included in the Advanced Engineered Materials segment using the equity method of accounting. These results were previously reported in the
Acetyl Intermediates segment using the cost method of accounting. Amounts have been retrospectively adjusted to reflect these changes.
Page 13 of 15
Table 7
Other Charges and Other Adjustments - Reconciliation of a Non-U.S. GAAP Measure - Unaudited
Other Charges:
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
(in $ millions) | 2011 | 2010 | ||||||||||
Employee termination benefits |
4 | 5 | ||||||||||
Ticona Kelsterbach plant relocation |
13 | 6 | ||||||||||
Plumbing actions |
- | (12 | ) | |||||||||
Asset impairments |
- | 72 | ||||||||||
Resolution of commercial disputes |
(20 | ) | 6 | |||||||||
Total |
(3 | ) | 77 | |||||||||
Other
Adjustments:
1 | ||||||||||||
Three Months Ended | Income | |||||||||||
March 31, | Statement | |||||||||||
(in $ millions) | 2011 | 2010 | Classification | |||||||||
Business optimization |
3 | 4 | Cost of sales / SG&A | |||||||||
Ticona Kelsterbach plant relocation |
(3 | ) | - | Cost of sales | ||||||||
Plant closures |
6 | 9 | Cost of sales / SG&A | |||||||||
Contract termination |
- | 22 | Cost of sales | |||||||||
(Gain) loss on disposition of assets |
1 | - | (Gain) loss on disposition | |||||||||
Write-off of other productive assets |
- | 17 | Cost of sales | |||||||||
Other |
- | 6 | Various | |||||||||
Total |
7 | 58 | ||||||||||
Total other charges and other adjustments |
4 | 135 | ||||||||||
1
These items are included in net earnings but not included in other charges.
Page 14 of 15
Table 8
Equity Affiliate Results and Reconciliation of Operating Profit to Affiliate EBITDA -
a Non-U.S. GAAP Measure - Total - Unaudited
a Non-U.S. GAAP Measure - Total - Unaudited
Three Months Ended | ||||||||
(in $ millions) | March 31, | |||||||
2011 | 2010 | |||||||
As Adjusted4 | ||||||||
Net Sales |
||||||||
Ticona Affiliates - Asia1 |
411 | 371 | ||||||
Ticona Affiliates - Middle East2 |
265 | 257 | ||||||
Infraserv Affiliates3 |
507 | 530 | ||||||
Total |
1,183 | 1,158 | ||||||
Operating Profit |
||||||||
Ticona Affiliates - Asia1 |
43 | 65 | ||||||
Ticona Affiliates - Middle East2 |
102 | 114 | ||||||
Infraserv Affiliates3 |
33 | 20 | ||||||
Total |
178 | 199 | ||||||
Depreciation and Amortization |
||||||||
Ticona Affiliates - Asia1 |
22 | 21 | ||||||
Ticona Affiliates - Middle East2 |
12 | 6 | ||||||
Infraserv Affiliates3 |
26 | 26 | ||||||
Total |
60 | 53 | ||||||
Affiliate EBITDA |
||||||||
Ticona Affiliates - Asia1 |
65 | 86 | ||||||
Ticona Affiliates - Middle East2 |
114 | 120 | ||||||
Infraserv Affiliates3 |
59 | 46 | ||||||
Total |
238 | 252 | ||||||
Net Income |
||||||||
Ticona Affiliates - Asia1 |
27 | 44 | ||||||
Ticona Affiliates - Middle East2 |
90 | 104 | ||||||
Infraserv Affiliates3 |
27 | 15 | ||||||
Total |
144 | 163 | ||||||
Net Debt |
||||||||
Ticona Affiliates - Asia1 |
85 | 144 | ||||||
Ticona Affiliates - Middle East2 |
(89 | ) | (76 | ) | ||||
Infraserv Affiliates3 |
318 | 447 | ||||||
Total |
314 | 515 | ||||||
1
Ticona Affiliates - Asia accounted for using the equity method includes Polyplastics (45%), Korean Engineering Plastics (50%), Fortron Industries (50%), Una SA (50%).
2
Ticona Affiliates - Middle East accounted for using the equity method includes National Methanol Company (IBN Sina) (25%).
3
Infraserv Affiliates accounted for using the equity method includes Infraserv Hoechst (32%), Infraserv Gendorf (39%) and Infraserv Knapsack (27%).
4
The companys Ibn Sina investment is now included in the Advanced Engineered Materials segment using the equity method of accounting. These results were previously reported in the Acetyl
Intermediates segment using the cost method of accounting. Amounts have been retrospectively adjusted to reflect these changes.
Page 15 of 15
Table 8 (continued)
Equity Affiliate Results and Reconciliation of Proportional Operating Profit to Proportional Affiliate EBITDA -
a Non-U.S. GAAP Measure - Celanese Proportional Share - Unaudited4
Three Months Ended | ||||||||
(in $ millions) | March 31, | |||||||
2011 | 2010 | |||||||
As Adjusted5 | ||||||||
Proportional Net Sales |
||||||||
Ticona Affiliates - Asia1 |
190 | 171 | ||||||
Ticona Affiliates - Middle East2 |
66 | 64 | ||||||
Infraserv Affiliates3 |
166 | 174 | ||||||
Total |
422 | 409 | ||||||
Proportional Operating Profit |
||||||||
Ticona Affiliates - Asia1 |
20 | 30 | ||||||
Ticona Affiliates - Middle East2 |
26 | 28 | ||||||
Infraserv Affiliates3 |
10 | 7 | ||||||
Total |
56 | 65 | ||||||
Proportional Depreciation and Amortization |
||||||||
Ticona Affiliates - Asia1 |
10 | 10 | ||||||
Ticona Affiliates - Middle East2 |
3 | 2 | ||||||
Infraserv Affiliates3 |
9 | 8 | ||||||
Total |
22 | 20 | ||||||
Proportional Affiliate EBITDA |
||||||||
Ticona Affiliates - Asia1 |
30 | 40 | ||||||
Ticona Affiliates - Middle East2 |
29 | 30 | ||||||
Infraserv Affiliates3 |
19 | 15 | ||||||
Total |
78 | 85 | ||||||
Equity in net earnings of affiliates (as reported on the Income Statement) |
||||||||
Ticona Affiliates - Asia1 |
13 | 21 | ||||||
Ticona Affiliates - Middle East2 |
21 | 23 | ||||||
Infraserv Affiliates3 |
9 | 5 | ||||||
Total |
43 | 49 | ||||||
Proportional Affiliate EBITDA in excess of Equity in net earnings of affiliates |
||||||||
Ticona Affiliates - Asia1 |
17 | 19 | ||||||
Ticona Affiliates - Middle East2 |
8 | 7 | ||||||
Infraserv Affiliates3 |
10 | 10 | ||||||
Total |
35 | 36 | ||||||
Proportional Net Debt |
||||||||
Ticona Affiliates - Asia1 |
39 | 65 | ||||||
Ticona Affiliates - Middle East2 |
(22 | ) | (19 | ) | ||||
Infraserv Affiliates3 |
105 | 147 | ||||||
Total |
122 | 193 | ||||||
1
Ticona Affiliates - Asia accounted for using the equity method includes Polyplastics (45%), Korean Engineering Plastics (50%), Fortron Industries (50%), Una SA (50%).
2
Ticona Affiliates - Middle East accounted for using the equity method
includes National Methanol Company (IBN Sina) (25%).
3
Infraserv Affiliates accounted for using the equity method includes Infraserv Hoechst (32%), Infraserv Gendorf (39%) and Infraserv Knapsack (27%).
4
Calculated by multiplying each affiliates total share amount by Celaneses respective ownership percentage, netted by reporting category.
5
The companys Ibn Sina investment is now included in the Advanced Engineered Materials segment using the equity method of accounting. These results were previously reported in the Acetyl
Intermediates segment using the cost method of accounting. Amounts have been retrospectively adjusted to reflect these changes.